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Dáil Éireann Debate, Tuesday - 26 April 2022

Tuesday, 26 April 2022

Ceisteanna (209)

Patricia Ryan

Ceist:

209. Deputy Patricia Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will implement the recommendations of the Duffy Cahill report; and if he will make a statement on the matter. [20780/22]

Amharc ar fhreagra

Freagraí scríofa

Ireland has a robust suite of legislation to protect and support workers facing redundancies. The Cahill-Duffy report was in response to a particular terms of reference which were quite narrow and specific and which do not address the generality of redundancies that arise in insolvency situations.

Following extensive engagement with the social partners, the 'Plan for Action on Collective Redundancies following Insolvency' was published in June 2021. This sets out several commitments to safeguard further the rights of workers in these circumstances including:

1. amendments to company law and employment law,

2. establishing a new Employment Law Review Group, and

3. the provision of an accessible guidance document.

In terms of Employment Law:

The Guidance Document was published in December 2021 and provides clear and accessible information in relation to the rights and remedies available to employees facing a collective redundancy situation following a company insolvency.

Work has commenced on the General Scheme of a Bill to amend the Protection of Employment Act 1977, in line with the changes set out in the Plan for Action. Once completed, it is intended to bring the General Scheme to Cabinet as soon as possible.

Work has also commenced on the drafting of the Terms of Reference for the Employment Law Review Group and organising suitable membership. The immediate focus is to get the Group up and running, initially on a non-statutory basis.

In terms of Company Law:

The following recommendations were progressed in the Companies (Rescue Process for Small and Micro Companies) Act 2021, which was commenced in December 2021:

- Amendment to section 627 to clarify the liquidator has power to bring/defend proceedings before the WRC and Labour Court.

- Section 587 to oblige the liquidator/director to ensure creditors are made aware they have the right to form and participate in a Committee of Inspection.

- Section 666 to provide that where a Committee of Inspection is appointed, it shall include at least one employee creditor member.

Further amendments in respect of the consequences of certain corporate liquidations and restructuring practices, including splitting of corporate operations from asset holding entities in group structures, were considered by the Company Law Review Group last year. The CLRG submitted its report on the matter in December 2021. 

The issues considered in the report are complex and required extensive discussion and analysis by the CLRG. The CLRG ultimately concluded that the incidence of abusive practices in corporate restructuring, while attracting significant attention, is in fact low. This conclusion is supported by the Office of Director of Corporate Enforcement which notes that its reviews of liquidations indicate that in over 90% of all liquidations, company directors had acted honestly and responsibly.

Notwithstanding this, the CLRG made eight recommendations for potential amendment to the Companies Act which are intended to further enhance the regulatory framework. The Report has been considered by officials from my Department in the context of the Plan for Action on Collective Redundancies following Insolvency. Minister Troy has considered their analysis and proposals, and intend for proposed amendments reflecting the consequences of certain corporate liquidations and restructuring practices be carried through a Companies (Miscellaneous Provisions) Bill.

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